BUAD307 Finals

Define the types of product attributes

core benefit- main benefit a consumer gets from a product.

expected attributes- basic attributes necessary to deliver the benefits or the attributes that have become expected.

add-on attributes- extras that aren’t expected but might add differentiation or value.

its a circle, moving outward.

Product life cycle stages and how to market at these stages

product development- conduct preliminary market research to determine customer needs, get feedback on prototypes

introduction (product first offered for sale commercially)- increase brand awareness by informing and educating consumers about product, try product sampling

growth (sales and profits rise, other companies see chances to enter market, leading to price competition)- position product, stress important attributes that make it superior. develop variations with added attributes to appeal to consumers and gain market share

maturity (sales level off and profits begin to decrease)- maintain market share. remind customers about the product. utilize brand loyalty.

decline (profits drop heavy, companies leave, small market again)- get any remaining profits from just a few products left in the market.

Functions of Packaging

communication- communicate info to customers and promote

perceptual- provide assurance and enhance product’s image

Environmental- resuability, environmentally friendly

what are services and how are they marketed differently than products?

services are intangible products delivered in the form of acts/deeds performed on behalf of/ with the customer. service marketing includes marketing the people performing the service and the process category of the 7ps.

what is the customer experience and how does it related to marketing?

the customer experience is the satisfaction a customer has wit every aspect of a brand (messages, people, service processes, tech, environment). Word of mouth from these poeple is good marketing.

Customer Journey Map

built from customer perspective, every point of contact between customers and providers and span the full lifecycle.

what is a service blueprint and how does it help market?

visual representation of the service process. includes detail on people, pyhysical evidence (visible elements of the service), technology, and sequence. helps identify failures and help providers understand most common failures

product breadth vs depth

breadth is the number of different product lines a company offers, while depth is the variety of options within a single product line.

diffusion of innovation theory

explains how consumers come around to a product. it helps marketers understand (in order) innovators, early adopters, early majority, late majority, laggards

stages of developing a new product

new product strategy, idea generation, concept testing, prototype product development, test marketing, commercialization, evaluation of results

5 criteria for predicting new product success

relative advantage, compatability, complexity, observability, triability

what is conjoint analysis?

research method used to determine which features of a product customers value most. Consumers try different combinations of product features and rank them.

3 extra P’s for service marketing

people- employees and other customers who impact the service experience

processes- procedures of the service

physical environment- physical setting or cues where the service occurs

firm ethics vs csr

ethics refer to the internal code of conduct for a company in their everyday business operations. CSR is a firm’s voluntary efforts to positively impact society

functions of a brand

differentiate the seller and create associations, memories, and emotions that give it meaning.

identify the brand elements

name, products, services, and emotions

how to make a brand map for brand associations?

ask survey questions and map common answers from consumers to visualize the different associations with their brand

how to creat a strategy for a cohsive brand image?

choose a branding strategy level, develop. a brand identity, and consistently communicate the brand

components of brand equity

trust benefits, image attributes, awareness

vertical strategy( line extension) vs horizontal strategy (category extensions) and pros and cons

vertical- using the same brand to enter a new product category (soap into shampoo)

horizontal- adding new flavors, sizes , colors in the same category

pros- new revenue sources, reduced costs and risks for product introductions, satisfy consumer desire for difference, block competitors, introduce new tech, control shelf space, addresses retailer need for different versions, can energize a brand.

Cons- product is redundant within line, under-exploited ideas, too many choices confuse customers, increased administrative costs, brand dilution which can undermine brand loyalty

manufacturer brand vs private label

manufacturer- owned by national producers

private label- created and sold by retailers (target)

private label allows distributors to gain high profit margin, differentiate stores, price control

family brand

brand name used across multiple related products (apple iphone, ipad, ipmac)

brand dilution

when overextending or poor extension weaken the brand image

co-branding

two brands collaborating on a product

elements of the promotion mix

sales promotions, public relations, personal selling, direct marketing

how to break through promotional clutter

keep the message simple, unexpected, concrete, credible, emotional, stories (success model)

push vs pull marketing strategies

push- pushing product through the channel (more aggressive form of marketing, promotion money goes to the channel)

Pull- products pulled through the channel (more focused on creating client relationships, softer marketing, promotion money goes to the consumer)

public relations toolkit

information releases (new products, favorable case histories, positive test results), press tours, sponsored news happenings, client spokesperson pieces

types of sales promotions

samples, rebates, coupons, contests, price packs, premiums, patronage rewards, point of purchase, advertising specialties, cross promotion

rational vs emotional appeals

rational- dependability, durability, ease of use, earnings enhancement, more leisure time, convenience, safety

Emotional- fear, humor, pride of possession, security, sex attraction, status, sympathy for others

explicit vs implicit tests for promotional effectiveness

explicit- directly ask people (surveys and interviews)

implicit- measure subconscious reactions (eye tracking, brain scans)

lagged effect

promotion impact takes time to show

how do search engines work?

crawling- programs that visit sites to determine content

Indexing- create a listing or directory of the content found through crawling

predominant digital advertising models

pay per click and display advertising

steps to a PPC ad campaign

define audience, set objective, research keywords, build a landing page, create the ppc ad, set ad keyword bids and targeting options, test the ad

how is remarketing used to promote a product?

visitor visits your site, leaves, sees your ad on a different site and then goes back to your site

content marketing vs affiliate marketing vs native advertising

content- create valuable free content to attract customers

affiliate- pay affiliates a commission for sales they generate

native - ads designed to blend in with normal content

general social media marketing tips

represent you brand identity, interact on social media, dont blast, create and share value (dont just pitch)

social maedia management tools

hootsuite, zoho social, mention

pricing terminology

fixed costs- associated with operating and marketing expenses of a company, don’t change with number of products sold

variable costs- per unit costs associated with the product (cost of material to make the product)

how to calculate profit margin and markup

profit margin= (price-cost/price)

markup= (price-cost)/cost

pricing models

cost based- cost of good/service as the basis for selling price

market based- company looks to competitors as main pricing factor

value based- based on perceived value the consumer receives from product/service

dynamic- variable rate for each customer

flat rate- one rate for unlimited use of a service during a specified timeframe

a la carte- consumers choose to add and purchase product features individually, givign them choice over final price

extremity aversion theory

people tend to avoid extreme options including in price, choosing a middle option

illegal pricing issues

price fixing (vertical and horizontal), price discrimination, predatory pricing (so low others cant compete), loss leader pricing (product sold below market cost to stimulate other sales of more profitable goods), dumping products in foreign markets

pricing objectives for profit

for profit- profit maximization, penetration, volume, compettive, relationship incentives

price increase offset formula

(price increase %)/(original % margin + price increase %)

pull customer pricing incentives

monetary- coupons, rebates, volume discounts, temporary price reduction

non-monetary- premiums, prizes, contests, games, loyalty programs

push collaborator pricing incentives

monetary- slotting allowance, advertising allowance, display allowance, spiffs, volume discounts, finance incentives

non-monetary- buy back guarantees, sales supporta dn training, contests

what are distribution channels and why are they needed?

a channel is a path to market for goods and services. Channels help companies figure out how they want to sell their product and how the customer wants to buy their product.

identify the classes of distribution channels

direct (supplier owns it), indirect (thirrd party between selling brand and buying customer),

distribution channel design considerations

determining: distributions role in achieving brand objectives, types of channels needed, the intensity of distribution making sense for the brand, the specific channel partners to use

channel member responsibilities

selling functions (ads, leads, personal selling)

financing (offering credit, collecting receivables)

order management (filing orders, assorting, storying, info sharing, invoicing)

post-sales service (product training, installing, assit with applications, product returns, repairs)

Sources of channel power

reward, coercive, referent, expertise, information, and legitimate

general retail terms

product line- group of related products marketed and sold by the same company under the same brand

product width- number of product lines a store offers

product depth- number of individual products in a product line

product assortment- range of choice offered to the consumer within a particular classification of merchandise

types of retail stores

convenience store, specialty store (narrow and deep product lines), discount store, department store (macys), supermarkets, big-box stores (walmart)

pros and cons of omnichannel retailing

pros- seamless customer experience, wider market reach

cons- integrating inventory systems, higher logistics complexity, managing returns across channels

planogram

diagram that shows how and where specific retail products should be placed on retail shelves or displays to increase customer purchases.

personal selling process

targeting/qualify leads, pre-approach/planning, presentation/interaction, handling reservations, close, follow up

when is personal selling superior to advertising

when buyers are geographically concetrated and in lower numbers

when products are expensive, technically complex, custom made, have special handling requirements, or have complex transactions

when prices are relatively high

when channels are relatively short

non profit pricing objectives

not for profit- profit maximization, penetration, cost recovery, market suppression, market incentives

break even formula

(fixed costs) + profits you want(not necessary) /(price- variable costs)